The pharmaceutical market is undergoing get the facts a tremendous offer of transform. Organizations for example Pfizer and Lilly are facing significant item patent expirations. As well as, firm pipelines are inadequate to interchange the revenues dropped to patent expirations. Finally, EU-based and US-based businesses and US are shifting their companies towards higher-growth marketplaces in China, India, and also other Emerging Marketplaces, building internal organizational turmoil in their home markets.

As lots of firms recognize, it really is decreasingly possible to simply “research” your way from these troubles. Component of the solution to those issues is acquiring and executing what we broadly consult with for a Business Improvement and Licensing technique (BD&L). This technique would include any and all options for seeking and financing external partnerships, licenses, mergers, and/or acquisitions.

Of course all multinational pharmaceutical and biotechnology providers have an BD&L group, usually led by a member with the senior management team. Larger corporations will have a team of a dozen or more executives, directors, and managers responsible for sourcing, analyzing, and recommending business advancement opportunities. Even smaller corporations will have one or two individuals formally charged with the BD&L process.

So why should pharmaceutical firms, even large ones with large BD&L teams, use consulting companies to assist them? We believe there are three reasons why this is the case:

Enhancement of an Overarching Framework - A lot of pharmaceutical and biotechnology businesses should be applauded for having a strategic and focused BD&L framework. Numerous businesses know exactly what they are looking for, i.e., asset type, stage of progress, geography, offer structure, and so forth. A framework, even a simple one, makes it easier for the search team to identify and quickly eliminate opportunities that do not fit. This then enables the team to focus more time on those opportunities which might be a good fit. This results in better due diligence and faster deal making.

Unfortunately, there are lots of companies which do not take a framework-driven approach. Several searches are haphazard, where providers look for anything with a certain revenue potential, or anything that can be sold by their existing sales and marketing infrastructure. In our experience, any approach which aims to easily provide the sales organization with products to sell is unsustainable in the long run.

Savvy BD&L executives can leverage consultancies to help them develop this overarching framework, identifying the key variables which are important to the business, its management, and its shareholders. Pharmaceutical administration consultants can bring an objective perspective to an exercise which, if done properly, results in a roadmap that the BD&L team can then use to plan and execute a BD&L tactical plan.

Broaden Skill Set - We have noticed that quite a few smaller BD&L teams have strengths and skills in some areas, but not others. For example, some companies have BD&L teams led by scientists or clinicians or attorneys who lack the experience to quantitatively and financially assess opportunities. Using a consultancy can provide unbiased, rigorous quantitative analysis and financial modeling.

Extend Geographic Breadth and Depth - The traditional model for US and EU corporations was to license drugs from Japanese firms, because a lot of innovative Japanese corporations lacked the global presence to develop and market their innovations outside their dwelling country.